The Press and Journal (Inverness, Highlands, and Islands)
£140m boost will expand shipping fleet
Offshore support vessel operator North Star is today announcing a £140 million finance package to support the “next wave” expansion of its renewables fleet.
The cash includes £50m from the Scottish National Investment Bank (Snib), a development investment bank established and funded by the Scottish Government.
Also backing the business are IFM Investors, Edmond de Rothschild’s Bridge platform and RBC Capital Markets.
Aberdeen-based North Star has traditionally focused on the offshore oil and gas industry, but entered the offshore wind market during 2021.
It won all four long-term charter SOV awards for the giant Dogger Bank wind farm taking shape off the east coast of England.
Fraser Dobbie, the company’s chief strategy officer, said: “Raising this level of corporate funding from the bank and other investors, as well as the ongoing backing of Partners Group, provides us with the means to continue to add to our growing vessel fleet and supports our ambition to be a leading player in the European SOV (service operations vessel) market.
“The £140m secured today secures the capital required for us to continue our new-build programme in the year ahead, while providing us with the flexibility to continue to expand these facilities to meet our strategy of 40 new SOVs by 2040.”
Snib executive director Jimmy Williamson said the bank was “catalysing” support for Scotland’s green energy supply chain by allowing firms like North Star to increase their focus on vital services for offshore wind farms, and assisting their transition to net zero.
Mr Williamson added: “This follows our investment in the Port of Aberdeen, which will continue to act as a hub for North Sea offshore services and, increasingly, new offshore wind farms, through its South Harbour expansion.”
Kevin Gilhawley, member of management, private infrastructure Europe, Partners Group, said: “Offshore wind forms part of our thematic focus on decarbonisation.
“We see mission-critical infrastructure support services, such as those provided by North Star, as a high growth sub-sector.
“We look forward to partnering with North Star and the group of lenders on its transformational growth plans.”
North Star operates 41 emergency response and rescue vessels (ERRVs) and platform supply ships supporting more than 50 offshore installations in the UK North Sea. Its ERRVs provide emergency support on standby, 24/7, 365 days a year.
The firm, previously owned by Aberdeen businessman Douglas Craig, employs around 1,300 crew and onshore workers in Aberdeen, Lowestoft and Newcastle.